Chris Lau

What's Happening to Citigroup?

When 36% of the stock is gov't owned, it is a matter of time that the common shareholders will be wiped out. The gov't will eventually own all common shares for C. That is why a latte at SBUX costs more than a share of Citi.

I disagree with Realsmartguy. This was done before and all that was achieved was a cause a delay in the eventuality of a stock price fall in the banks the SEC tried to protect.

Bank Bailouts and Trust Preferreds: Still Too Much Risk Here

If Graham disliked preferred decades ago, we should too.
these issues are coming out like a storm over in Canada.

chrispycrunch.blogspot...

How High Leverage Has Brought Down the Whole Banking Industry

What choice does the Fed have in restoring some kind of liquidity for the markets? The lending market is like a car brake that has seized up.

Main question remains: when will the housing prices stabilize? The Fed needs to restore confidence in the banks, long enough for housing prices, and therefore banking losses, to stabilize.